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US markets rose sharply as default was avoided.
The market opened lower on Thursday. Hang Seng index opened down 186 points, H share index down 65 points and technology index down 29 points. HSBC lost 2.2% for 36-point loss. Ali...
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US markets rose sharply as default was avoided.
Analyst : Lun Sheung Nim (CEO, GEO Securities Limited)
The market opened lower on Thursday. Hang Seng index opened down 186 points, H share index down 65 points and technology index down 29 points. HSBC lost 2.2% for 36-point loss. Alibaba lost 1.3% for 19-point loss. Tencent lost 0.78% for 12-point loss. Meituan lost 1.15% for 11-point loss. Hang Lung lost 2.4% to lead the losers at opening. Shanghai composite index opened down 7 points. The market fell further after opening, as Hang Seng index lost more than 200 points. HSBC lost 2.1% for 39-point loss. Alibaba lost 3% for 45-point loss. Tencent lost 3% for 46-point loss. Meituan lost 3.9% for 39-point loss. AIA lost 1.2% for 17-point loss. CCB lost 1.55% for 17-point loss. Shipping stocks fell sharply as freight rates continues to fall. OOIL lost 7.5% to become the top loser. Cosco Holding lost 2.2%. Cosco Development lost 2%. Consumption stocks fell. Lining lost 4%. CR Beer lost 3.7%. Budweiser lost 2.6%. Mengniu lost 1.95%. Xiaomi’s results were better than expected. Share price rose 3.5% to lead the blue chips. Price of gold fell below US$2000. Gold miners fell. Zijin lost 2.34%. Zhaojin lost 1.8%. SD Gold lost 1.55%. Electric car shares fell sharply. XPeng lost 8.4%. Nio lost 9%. Shanghai composite index closed the morning down 19 points. Hang Seng index closed down 395 points, H share index down 147 points and technology index down 93 points. Turnover was $55 billion.

The market fell further in the afternoon. Hang Seng index lost more than 400 points. Heavyweights fell further. Alibaba lost 3.5% for 52-point loss. Tencent lost 3.8% for 57-point loss. Meituan lost 4.6% for 46-point loss. HSBC lost 1.8% for 36-point loss. AIA lost 1.5% for 23-point loss. CCB lost 1.9% for 20-point loss. HK Exchanges lost 2.4% for 16-point loss. Lining lost 4.6%. CM Bank lost 3.8%. CNOOC lost 2.2%. OOIL lost 7.9% on downgrade. Cosco Holding lost 2%. Cosco Development lost 3%. BYD lost 5.6% for 26-point loss. Geely lost 3.55%. XPeng lost 8.4%. Nio lost 9.9%. Hang Seng index fell to a low of 18621, down 495 points. Shanghai composite index closed down 4 points. The market recovered slightly at the close. Hang Seng index closed down 369 points, H share index down 144 points, and technology index down 84 points. Turnover was $115.5 billion.

Over last Friday, overseas markets rose on optimism that the US could avoid default on its debt obligations. DAX rose 190 points. CAC rose 90 points and FTSE rose 56 points. The Congress and the US President agreed to raise the debt ceiling for two years. US market rose. Dow Jones rose 328 points. S & P rose 54 points and Nasdaq rose 277 points. Hong Kong ADR’s rose 35 points but night future lost 167 points. We expect the market to rebound today.
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